Project Profile - PLASTER OF PARIS

I) Introduction:

         Plaster of Paris, which is calcium sulphate with half molecule of water of crystallization
         (CaSo4 ½ H2O) possess outstanding property of setting and subsequent hardening when mixed with water. Plaster of Paris is extensively used in ceramic industry for the preparation of models, moulds and plaster of toys. It is also used as a main raw material in the manufacture of toys and statues, chalk crayons, gypsum plaster boards, decorative picture frames, besides a wide range of applications in the interior decoration of buildings and other establishments.

II) Market Potential:

         There is a growing industrial activity in the field of white ware, such as pottery, sanitary ware, chemical and electrical porcelains, requiring large quantities of plaster of Paris for making moulds and preparation of moulds. The demand for the product is ever increasing. There is also considerable demand for the plaster of Paris arising from a large number of shops and establishments engaged in making statues and interior decoration as well as decorative plaster boards for false ceiling etc., which is in turn creating a good scope for setting up new units.

III) Basis and Presumptions:

        1.         It has been taken into consideration that the unit will work on single shift basis for 300 working days in a year.
        2.         Labour and wages mentioned as per the prescribed minimum wages.
        3.         Interest rate at @ 14% is considered in the project profile for recurring and non-recurring investment.
        4.         Margin money will vary from 10-25% depending upon the location and scheme adopted by the entrepreneur,                     i.e. self-employment or commercial scheme.
        5.         The costs of machinery and equipment, raw materials and consumables, other contingent expenses etc.,                     indicated in the profile are based on those prevailing at the time of preparation. Therefore, there are subject                     to necessary changes from time to time based on the local conditions.
        6.         The break-even point is calculated on full capacity utilization basis.
        7.         The unit requires 1 to 2 months trial production to achieve full capacity.

IV) Implementation Schedule:

        It is possible to implement this project within 6 months. The following is the time schedule required for implementation:

V) Technical Aspects:

a) Process of Manufacture:

        The raw material gypsum is sorted and washed with water for removal of sand and other impurities. The lumps thus obtained are then dried and powdered in pulverizer. The dried gypsum powder is calcined in rotary drum- calcined using light diesel oil as fuel. The low-pressure burner is used for calcination at a temperature of 160ºC to 180ºC. The process of calcination is done over a period of about 2 hours, so that one and half molecules of water is removed to convert the gypsum (CaSo4 2 H2O) into plaster of Paris
        (CaSo4 ½ H2O). After cooling the product (plaster of Paris) is further pulverised to a fineness of 150 meshes and packed in airtight polythene lined gunny bags to avoid the plaster of Paris from absorption of moisture. For manufacture of surgical grade plaster of Paris, a mineral silinite, which is considered to be a purer variety of gypsum, is used.

b) Quality Control and Standards:

        The Bureau of Indian Standards has formulated and published the following specifications for maintaining quality of the         product and testing purpose.

        IS 2333:1992 Plaster of Paris for ceramic industry

        IS 1288:1982 Methods of tests for mineral gypsum

        IS 4738:1998 Bandage plaster of Paris

        IS: 2547 (Part 1): 1976 Gypsum building plaster including

        Premixed light weight plaster

        IS 2547 (Part 2): 1976 Gypsum building plaster including premixed lightweight plaster

c) Production Capacity (per annum):                                 Qty. : 900 MTs. And Value of: Rs.27,00,000.

d) Motive Power:                                                                10 HP.

e) Pollution Control:

        The product does not create any noise or water pollution. The air pollution will have to be continuously monitored. Masks can be used by the workers while making powder (grinding).

f) Energy Conservation

        General precautions saving energy particularly, the electricity and fuel are required to be followed by adopting energy conservation techniques not only to conserve the power and fuel but also to save considerable expenditure on their consumption in own interest.

VI) Financial Aspects:
        A) Fixed Capital
                (i) Land and building

                (ii) Machinery and Equipments

                (iii) Pre-operative expenses:

                (iv) Total fixed capital:

B. Working Capital (Per Month)

                (i) Staff and Labour (per month)

                (ii) Raw Materials (per month)

                (iii) Utilities (per month)

                (iv) Other Contingent Expenses (per month)

                (v) Working Capital (per month)

                (vi) Working Capital (for 3 months) 5,62,680 or say 5,63,000

C. Total Capital Investment

(VII) Financial Analysis

                (i) Cost of production (per annum) (Rs.)

                (ii) Turnover (per annum)

                (iii) Net Profit (per year) (Before Income tax)

        (iv) Net Profit Ratio

        = Net profit per year x 100 / Turnover per year

        = 2,52,000x 100 / 27,00,000

        = 9.33%

        (v) Rate of Return

        = Net profit per year x 100 / Total capital investment

        = 2,52,000x 100 / 8,03,180

        = 31.37 %

(vi) Break even Point:

(a) Fixed cost

(b) Net profit (per year) -------- 3,03,835

B.E.P.: = Fixed cost x 100 / Fixed cost + Profit

             = 4,49,780x 100 / 4,49,780+ 2,52,000

             = 64 %

VIII) Addresses of Machinery and Equipment Suppliers

IX) Raw Material Suppliers